Autoparts retail giant Bapcor is predicting significant sales and profit growth in the months ahead after completing a comprehensive operational reorganisation.
While the company, which owns Autobarn, posted a net profit of A$28.1 million for the year to June 30, it took a $52.3 million predominantly non-cash hit following a balance sheet review. The net profit was 117 per cent higher than the previous year.
Group sales of $1.9435 billion were down 1.5 per cent year-over-year, with its trade segment sales improving 1.3 per cent, despite soft trading in May and June. Revenue from the specialist wholesale segment fell 3.2 per cent due to the impact of consolidation and restructuring activities. In contrast, the retail segment, and Bapcor’s New Zealand business, suffered from the ongoing “challenging” operating environment, the company said.
Restructuring activities achieved $27.5 million in cost savings, largely due to significant investments in improving the business’s IT infrastructure and systems, as well as a review of its store network, including closures and refurbishments.
“While this activity caused considerable disruption to our operations, which impacted trading performance, they were necessary to drive business simplification, drive a more customer-led business and strengthen the company’s core business for future growth,” said executive chair and CEO Angus McKay.
“FY25 was the start of the strategic reset for the company, focused on simplifying our operations and reducing our cost base. We exited or relocated 70 sites, including consolidating 23 smaller warehouses, opened 21 new branches/stores and three new state-based distribution centres.”
The company also sold its non-core MTQ business last November and launched a brand refresh for its Autobarn division.
McKay said Bapcor expects to continue to realise the benefits from its operational review during FY26, “with segment earnings growth funding further investment in our technology and people capabilities”.
We expect FY26 NPAT to be weighted towards the second half of the year as the benefits of our strategic actions progressively flow through.
“We remain focused on executing against our strategic priorities. With a refreshed leadership team, car business strategy and a balance sheet to support.”
Last year, Bapcor rejected a $1.83 billion acquisition offer from Bain Capital.
